v3.25.3
Revenues
 9 Months Ended
Oct. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenues
Note 3—Revenues:
Changes in Estimates on Contracts
Changes in estimates of revenues, cost of revenues or profits related to performance obligations satisfied over time are recognized in operating income in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can occur routinely over the performance period for a variety of reasons, which include: changes in scope; changes in cost estimates due to unanticipated cost growth or reassessments of risks impacting costs; changes in the estimated transaction price, such as variable amounts for incentive or award fees; and performance being better or worse than previously estimated.
A significant portion of the Company's contracts recognize revenue on performance obligations using a cost input measure (cost-to-cost), which requires estimates of total costs at completion. In cases when total expected costs exceed total estimated revenues for a performance obligation, the Company recognizes the total estimated loss in the quarter identified. Total estimated losses are inclusive of any unexercised options that are probable of award, only if they increase the amount of the loss.
Aggregate net changes in estimates on contracts accounted for using the cost-to-cost method of accounting were recognized in operating income as follows:
Three Months EndedNine Months Ended
October 31,
2025		November 1,
2024		October 31,
2025		November 1,
2024
(in millions, except per share amounts)
Net favorable (unfavorable) adjustments
$4 $15 $7 $15 
Net favorable (unfavorable) adjustments, after tax
4 13 7 12 
Diluted EPS impact$0.09 $0.26 $0.15 $0.23 
Revenues were $8 million and $15 million higher for the three and nine months ended October 31, 2025, respectively, and $13 million and $14 million higher for the three and nine months ended November 1, 2024, respectively, due to net revenue recognized from performance obligations satisfied in prior periods.
Disaggregation of Revenues
The Company's revenues are generated primarily from long-term contracts with the U.S. government including subcontracts with other contractors engaged in work for the U.S. government. The Company disaggregates revenues by customer, contract type and prime versus subcontractor to the federal government for each of its reportable segments.
Disaggregated revenues by customer were as follows:
Three Months Ended
October 31, 2025
November 1, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Department of War$970 $2 $972 $992 $13 $1,005 
Intelligence and other federal government agencies
462 387 849 517 413 930 
Commercial, state and local governments and international
7 38 45 6 35 41 
Total$1,439 $427 $1,866 $1,515 $461 $1,976 
Nine Months Ended
October 31, 2025
November 1, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Department of War$2,872 $7 $2,879 $2,916 $15 $2,931 
Intelligence and other federal government agencies
1,351 1,155 2,506 1,430 1,158 2,588 
Commercial, state and local governments and international
23 104 127 20 102 122 
Total$4,246 $1,266 $5,512 $4,366 $1,275 $5,641 
Disaggregated revenues by contract type were as follows:
Three Months Ended
October 31, 2025
November 1, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Cost reimbursement$1,148 $15 $1,163 $1,245 $28 $1,273 
Time and materials ("T&M")
129 288 417 119 287 406 
Firm-fixed price ("FFP")
162 124 286 151 146 297 
Total$1,439 $427 $1,866 $1,515 $461 $1,976 
Nine Months Ended
October 31, 2025
November 1, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Cost reimbursement$3,375 $48 $3,423 $3,464 $69 $3,533 
Time and materials ("T&M")
387 856 1,243 430 819 1,249 
Firm-fixed price ("FFP")
484 362 846 472 387 859 
Total$4,246 $1,266 $5,512 $4,366 $1,275 $5,641 
Disaggregated revenues by prime versus subcontractor were as follows:
Three Months Ended
October 31, 2025November 1, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Prime contractor to federal government$1,316 $352 $1,668 $1,384 $385 $1,769 
Subcontractor to federal government116 37 153 125 41 166 
Other7 38 45 6 35 41 
Total$1,439 $427 $1,866 $1,515 $461 $1,976 
Nine Months Ended
October 31, 2025
November 1, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Prime contractor to federal government$3,854 $1,053 $4,907 $3,976 $1,062 $5,038 
Subcontractor to federal government369 109 478 370 111 481 
Other23 104 127 20 102 122 
Total$4,246 $1,266 $5,512 $4,366 $1,275 $5,641 
Contract Balances
Contract balances for the periods presented were as follows:
Balance Sheet line itemOctober 31,
2025		January 31,
2025
 (in millions)
Billed and billable receivables, net(1)
Receivables, net$554 $526 
Contract assets - unbillable receivablesReceivables, net491 474 
Contract assets - unbillable receivables
Other assets
16 29 
Contract assets - contract retentionsOther assets16 15 
Contract liabilities - current
Other accrued liabilities
24 38 
Contract liabilities - non-current
Other long-term liabilities
1 — 
(1)    Net of allowance of $3 million as of October 31, 2025 and January 31, 2025.
During the three and nine months ended October 31, 2025, the Company recognized revenues of $2 million and $27 million, respectively, relating to amounts that were included in the opening balance of contract liabilities as of January 31, 2025. During the three and nine months ended November 1, 2024, the Company recognized revenues of $3 million and $33 million, respectively, relating to amounts that were included in the opening balance of contract liabilities as of February 2, 2024.
Remaining Performance Obligations
Remaining performance obligations ("RPO") represent the transaction price of exercised contracts (both funded and unfunded) less inception to date revenue recognized. RPO does not include unexercised option periods and future task orders expected to be awarded under IDIQ contracts. As of October 31, 2025, the Company had approximately $6.5 billion of RPO. The Company expects to recognize revenue on approximately 80% of the RPO over the next 12 months and approximately 89% over the next 24 months, with the remaining recognized thereafter.